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- DictionaryCorporation tax
noun
- 1. tax levied on companies' profits. British
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Jan 22, 2024 · The federal corporate tax rate in the United States is 21%, and it applies to a corporation's profits. The taxes are paid on a company's taxable income, which includes revenue minus expenses.
- Julia Kagan
A corporate tax, also called corporation tax or company tax, is a type of direct tax levied on the income or capital of corporations and other similar legal entities. The tax is usually imposed at the national level, but it may also be imposed at state or local levels in some countries.
Corporate tax in the United States - Wikipedia. Contents. hide. (Top) Overview. State and local income taxes. History. Entity classification. Taxable income. Corporate tax rates. Federal tax rates. State income tax rates. Tax credits. Tax deferral. Interest deduction limitations. Corporate tax avoidance and corruption. Other corporate events.
A corporate income tax (CIT) is levied by federal and state governments on business profits. Many companies are not subject to the CIT because they are taxed as pass-through businesses, with income reportable under the individual income tax. Corporate Tax Rate.
Fact-Checked. Corporations are taxed differently than other business structures: A corporation is the only type of business that must pay its own income taxes on profits.
May 31, 2022 · US & World Economies. US Economy. U.S. Corporate Income Tax: Its Effective Rate and History. How the Tax Cuts and Jobs Act Changes Corporate Taxes. By Kimberly Amadeo. Updated on May 31, 2022. Reviewed by. Robert C. Kelly. Fact checked by Emily Ernsberger. In This Article. View All. Photo: recep-bg / Getty Images. Was this page helpful?
The corporate income tax is the third-largest source of federal revenue, although substantially smaller than the individual income tax and payroll taxes. It raised $424.7 billion in fiscal year 2022, 8.7 percent of all federal revenue and 1.7 percent of gross domestic product (GDP).
